THE SURGE OF PLOTTED DEVELOPMENT IN REAL ESTATE

Rohit Cariappa, director, sales & CRM, Assetz Property Group, on some trends

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Real estate developers in India have been embracing the idea of plotted developments with gusto. This has prompted investors and buyers to put their money into plotted developments throughout the country because they are less expensive to maintain and can be modified easily whenever necessary while still providing long-term financial stability.

The practice of real estate developers selling individual land plots within a specified gated area where buyers have the opportunity to build private villas and weekend retreats is known as a plotted development. Such developments differ from the conventional apartment complexes which come with prebuilt structures. They also allow homeowners to design homes based on their preferences and budgets.

Suburban areas and peri-urban areas in India have seen a growing demand for plotted developments in recent years. A JLL study shows that real estate developers purchased approximately 3,294 acres of land between January 2022 and October 2023. Additionally, Anarock reveals that approximately 2,252 acres of the total land deals in FY-24 are proposed for residential, plotted, and township projects.

Plotted developments are becoming a popular strategy for real estate developers due to the several advantages it offers, including monetization. Land banks enable developers to capitalise on their idle assets.

Plotted developments also facilitate faster liquidation for the buyer as it is easy to resell plotted developments at a higher value and generate immediate cash flow.